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A former Federal Reserve Board governor who suddenly left her post last summer violated the bank’s trading rules, according to a report Saturday citing new revelations from the U.S. Office of Government Ethics.
The documents related to Adriana Kugler revealed multiple purchases and sales of shares in stocks such as Apple, Southwest Airlines and restaurant group Cava, and showed that many of the purchases and sales occurred during a blackout period before policy meetings, when officials are not allowed to conduct such transactions. The New York Times reported.
The disclosures state that “certain business activities were conducted by Dr. Kugler’s husband, without Dr. Kugler’s knowledge, and she confirms that her husband did not intend to violate any rules or policies.”
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Federal Reserve rules, which apply to spouses and children of policymakers, prohibit trading in individual companies and limit purchases to diversified investments and mutual funds, the Times said.
The newspaper added that the rules also ban trading in cryptocurrencies, foreign exchange and commodities and block all transactions for a period of about two weeks before policymakers meet to vote on new interest rates.
Adriana Kugler testifies before a Senate Banking Committee hearing on her nomination to serve on the Federal Reserve Board of Governors on Capitol Hill in Washington, June 21, 2023. (Jonathan Ernst/Reuters/Reuters)
The Federal Reserve revised its trading rules in 2022 after it emerged that some policymakers participated in financial markets as the Federal Reserve took steps to support the US economy at the start of the coronavirus pandemic, the newspaper said.
Kugler’s dismissal was announced by the Federal Reserve early August.
“It has been the honor of a lifetime to serve on the Board of Governors of the Federal Reserve System,” Kugler said in a statement at the time. “I am especially honored to have helped achieve our dual mandate at a critical time: lowering prices and maintaining a strong and resilient labor market.”
“I appreciate Dr. Kugler’s service to the Board of Governors and wish her continued success in her future endeavors,” added Federal Reserve Chairman Jerome Powell. “She brought impressive experience and academic insights to her work on the board.”
The central bank said as governor, “Dr. Kugler was an active member on multiple committees, including the Committee on Financial Stability, the Federal Reserve Banking Committee, the Committee on Administrative Affairs, and the Subcommittee on Smaller Regional and Community Banking.”
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Federal Reserve Board of Governors member Adriana Kugler speaks before the Economic Club of New York on June 5, 2025 in New York City. (Kylie Cooper/Reuters/Reuters)
The Times reported Saturday that some of the improper transactions, which could amount to as much as $250,000, were reported to an internal Federal Reserve watchdog early this year.
Just before announcing her resignation, Kugler asked Powell in July to grant her a waiver so she could trade and get rid of impermissible assets during the blackout period, but that request was denied, the newspaper added.
U.S. Federal Reserve Chairman Jerome Powell speaks during a press conference at the end of a Monetary Policy Committee meeting in Washington on October 29, 2025. (Jim Watson/AFP/Getty Images/Getty Images)
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Kugler was initially scheduled to leave the Federal Reserve in January and return to Georgetown University to teach at the time of her early departure, the Times reported.
